==What do I put in my budget?==

The next step is to work out your budget. Your budget lists how much money is coming into your household and how much you need to spend.

* GST refunds.

'''Expenses:''' The next thing you need to do is list all your expenses. Make sure that the amounts are realistic. Figure out all of your expenses on a weekly, monthly, or seasonal basis. Make sure you remember to include personal expenses, such as loans, restaurant meals or gym memberships, and household expenses, such as rent, groceries, cable, and utilities. When you make a list of your expenses, think about whether you may be able to make any cutbacks. If you can make cutbacks, this <span class="noglossary">will</span> make more money available for you to pay back your debts.

==What can a credit counsellor do to help me?==

You may wish to <span class="noglossary">contact</span> a credit counsellor for help in developing your plan to pay off the debts. You may also wish to write a letter to your creditors that explains what you have decided.

==How do I <span class="noglossary">contact</span> my creditors and what do I say?==

===Step 1: Write a short letter to each of your creditors===

If you have problems that are preventing you from paying your debt, such as health issues or job loss, you should provide proof, such as:

* A letter from your doctor if you have health problems that affect your income.

* Documents that show changes in your job. For example, you may have had your work hours cut, or you may have lost your job, or your Employment Insurance benefits have ended.

=== Step 3: Attach your budget===

Your budget shows the people you owe money to (creditors) what you can afford to pay towards your debts. If a creditor thinks the amount you spend on something is unreasonable, they may ask you to explain why you spend this amount.

=== Step 4: Keep notes===

If you speak with any of your creditors about your situation, write down their name, number, the time of call, and what you discussed. If the person you were talking to suggests a payment plan, ask her or him to send it to you in writing.

==Debt collectors==

Sometimes the person you owe money to has turned the debt over to a debt collection agency. There are laws that protect debtors from what a debt collector can do. For example, there are strict limits on contacting your family or your employer, and you have a right to tell a collector to stop phoning you altogether.

For more information about debt collectors, contact Consumer Protection BC at [http://www.consumerprotectionbc.ca www.consumerprotectionbc.ca]. Find more helpful information and links in the [[Sources of Help for Consumers]] section.

{{REVIEWED | reviewer = [[People's Law School]], 2013}}